Bitcoin price prepares for volatility as spot supply vanishes

Bitcoin’s recent rally occurred as funding rates turned negative, and BTC held on exchanges and OTC desks shrank.

Key takeaways:

Bitcoin onchain data shows a steady depletion of exchange and OTC balances, pointing to long-term accumulation and tightening supply.

With BTC open interest near record highs and liquidity drying up, the market is tightly coiled, raising the probability of a sharp move.

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